Building a machine-learning model to sharpen planning lead times
The context
National industrial products distributor. Planning lead times didn't reflect real supplier performance across a large import and domestic supplier network — inflating safety stock and inventory across the distribution centres.
What we did
- Assessed the inventory benefit achievable with improved lead-time accuracy
- Built a cost-effective machine-learning prediction model for planning lead times — analysing the import and domestic supplier network, DCs, product categories and inbound supply
- Implemented model processes to refresh planning lead times on a semi-regular basis
The results
- More accurate planning lead times feeding replenishment
- Quantified inventory reduction benefit case
- Repeatable, low-cost model process owned by the client
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